When a single brand such as Red Bull dominates the Rs 200-crore energy drink category, it gives a chance for more players to enter the category. Clarity in regulations regarding the amount of caffeine used in these drinks is also making more companies eye the relatively nascent category.
Targeting the youth
From smaller companies like the Pune-based Greenways Foods & Beverages to big textile companies like Raymonds (Kamasutra energy drink), the number of energy brands is on the rise with the youth as their target audience.
“We will take Red Bull by its horns and become the next big player after it in this market. Our product will be healthy with half the amount of caffeine used by Red Bull,” says Nitin Gupta, Managing Director, K.G Functional Beverages, which launched the ‘Restless Action’ drink.
Pegged a notch lower than Red Bull at Rs 90 for 250 ml (Red Bull sells for Rs 95), Restless expects to take the category forward and has pitted itself against the market leader.
Meanwhile, Pune-based Greenways Foods & Beverages is also re-entering the category with its brand I can. Sachin Chopda, Managing Director, Greenways Foods Beverages said, “When there is a single leader like Red Bull, there is room for a second and third player to make mark in this category which has always been there for more than decade in this country.”
But, there have been a large number of energy drink brands which have fallen out of the category after making heavy investments.
Indian brands like Cloud Nine and XXX have suddenly become low-key after advertising heavily across media and even associating with certain IPL teams. Amway has also withdrawn from the category after launching its XL brand of energy drink four years ago.
Deepali Shukla, Associate V-P, Marketing, Amway, says, “The energy drinks category did not pick up when we entered it four years ago, but now we may look at getting back as the category is making a comeback. Consumers compared it to carbonated drinks and were not willing to pay a premium. Today, they would rather consume it in bars and use it as a mixer than pick it up from the retail shelves.” Fruit drink concentrate company Rasna has decided to lower the price points for the energy drink category by creating a mass segment which is still vacant in energy drinks.
Piruz Khambatta, Chairman & Managing Director, Rasna, said, “We are trying to introduce the concept of an Indian energy drink by adding herbs, which will be mass and priced lower than brands like Red Bull.”